Investor Ideas Potcasts #558, Cannabis News and Stocks on the Move; (CSE: XTRX), (TSX: VLNS) (OTC: HCANF), (CSE: TRIP) (TSXV: N), (NYSE: HEXO)
Delta, Kelowna, BC - April 28, 2021 (Investorideas.com Newswire) www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today's podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
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Investor Ideas Potcasts #558, Cannabis News and Stocks on the Move; (CSE: XTRX), (TSX: VLNS) (OTC: HCANF), (CSE: TRIP) (TSXV: N), (NYSE: HEXO)
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Today's podcast overview/transcript:
Good afternoon and welcome to another episode of Investorideas.com "Potcast" featuring cannabis news, stocks to watch as well as insights from thought leaders and experts.
Today's podcast is sponsored by Phyto Extractions Inc. (CSE:XTRX), an agricultural-scale cannabis extraction, distillation and product manufacturer located in Langley, BC at its co-located Health Canada Licensed Standard Processing (extraction, no cultivation), Sales (extracts, topicals, and edibles) through Adastra Labs Inc. and Analytical Testing Laboratory through Chemia Analytics Inc. Adastra Labs also has a pending Health Canada R&D license amendment.
In today's podcast we look at a few public company announcements.
The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF), a leading manufacturer of cannabis products, announced that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Green Roads and its majority owned manufacturing subsidiary (collectively, "Green Roads") in a cash and share transaction for closing consideration of US$40 million, plus up to an additional US$20 million in contingent consideration payable upon the business achieving certain EBITDA milestones.
With the Acquisition of Green Roads, The Valens Company strengthens its capabilities to supply US domestic and global markets with an expanded product offering. Additionally, the Acquisition provides immediate entry into the US market with a trusted and leading CBD health and wellness brand with an established manufacturing and distribution platform. The Green Roads Acquisition is expected to be accretive to the Company in 2021. If all the Milestones are met in 2022, the transaction represents approximately 4.5x fiscal 2022 EBITDA. On a pro forma basis, the combination of Valens and Green Roads results in a business which generated total revenue of C$111.6M in 2020.
Green Roads is the largest privately-owned CBD company in the United States, with a focus on quality from its pharmacist-founded background. Based in South Florida, the company produces an award-winning lineup of health and wellness products using hemp-derived CBD across a variety of consumer categories such as oils, topicals, ingestibles, personal care and pet products. Additionally, Green Roads provides B2B manufacturing services for a variety of partners. Green Roads boasts a leading market share and brand platform in the US CBD industry, with an extensive distribution network consisting of over 7,000 retail stores and a robust e-commerce and marketing platform with over 30,000 five-star reviews across all its product lines. Similar to The Valens Company, Green Roads holds a deep commitment to quality control and consumer transparency, producing pharmacist-driven proprietary formulations that result in only the highest quality consumer products. Green Roads is currently one of a small number of US CBD companies that produce their products in their own cGMP facilities, a testament to their dedication to integrity and excellence.
Tyler Robson, Chief Executive Officer, Co-Founder and Chair of The Valens Company, said: "After analyzing over a hundred companies across the US CBD market, we clearly recognized the value in the Green Roads platform with its best-selling brand. Our complementary businesses, culturally aligned teams, and shared 'it's personal' mission to provide consumers with high quality, innovative cannabis products led to an undeniable combination that we believe will disrupt the industry. The acquisition of Green Roads represents only the first step in our US expansion strategy as we expect to continue to unlock complementary, revenue-generating opportunities while we forge our presence and build our reputation in the world's largest cannabinoid market. Together, The Valens Company and Green Roads make a formidable team, and the combined entity will be primed for significant growth as the global market develops."
Valens also announced that it has submitted an initial application to list its common shares on the Nasdaq Capital Market.
"We have taken a significant step forward in achieving one of our main goals for 2021 by filing our initial application for listing on the Nasdaq on the back of announcing our first acquisition in the US," said Jeff Fallows, President of The Valens Company. "We believe that listing in the US will unlock various opportunities to enhance corporate visibility, increase liquidity and broaden overall awareness of The Valens Company to a larger investor base while driving value for our shareholders."
The listing of the Company's Shares remains subject to the review and approval by Nasdaq of the Company's listing application and the satisfaction by the Company of all applicable listing, governance and regulatory requirements. In connection therewith, the Company expects to ask shareholders of the Company to approve a consolidation of the Shares at the next annual and special meeting of Shareholders scheduled for May 25, 2021. If the share consolidation is approved at the Shareholder Meeting, the Company believes that it will meet the requirements for listing on the Nasdaq shortly thereafter, including Nasdaq's financial and liquidity requirements. Further details of the proposed share consolidation will be contained in the management information circular of Valens mailed to Shareholders and to be filed shortly on SEDAR at www.sedar.com.
The Company currently expects that Nasdaq will make a decision on the Company's application by the end of June 2021. The Shares will continue to be listed on the Toronto Stock Exchange under the symbol "VLNS". In addition to the Company's primary listing on the TSX, the Shares will continue to be quoted on the OTCQX until such time as the Shares may be listed on the Nasdaq, if the Company's listing application is approved.
Valens has retained Stikeman Elliott LLP in Canada and Foley Hoag LLP in the US as legal counsel to advise the Company throughout the application process.
Further to the joint press release dated November 19, 2020, Halo Collective Inc. (NEO: HALO) (OTC: HCANF) and Red Light Holland Corp. (CSE: TRIP) (OTC: TRUFF) announced that Articles of Incorporation have been filed with the Oregon Secretary of State to form Red Light Oregon, Inc., a 50/50 joint venture between Halo and Red Light Holland. The JV will be capitalized with US$50,000 from each party, and its initial directors will be Todd Shapiro, Red Light Holland Director and CEO, Sarah Hashkes, Red Light Holland Chief Technology and Innovation Officer, Kiran Sidhu, Halo CEO and Director, and Katie Field, Halo President. The JV will monitor ongoing regulatory updates regarding Oregon's Measure 109, appoint a management team, and develop a commercialization strategy in due course.
"We are delighted to take this next step with Halo. We now have the entity and team in place to begin laying the groundwork for potential future participation in the Oregon Psychedelic Magic Mushroom market." Said Todd Shapiro, CEO, and Director of Red Light Holland. "Kiran and his team have extensive experience working with Oregon regulators, and we could not be more excited to have them as a partner! We also plan on continually monitoring other future markets opening in the USA as the movement, both socially and from a therapeutic/medicinal level promoting the acceptance of psilocybin via legal, policy and regulatory measures rapidly progress."
"We have been diligently studying the anticipated market growth for psychedelic products and the potential benefits for consumers. Now that Governor Brown appointed a board to oversee Oregon's rollout of psylocibin, Halo, and Red Light decide to take the next step towards implementing our joint venture. Todd is a visionary, and we are thrilled to be working with him and his team to make our dream of manufacturing and serving consumers with these new therapies a reality. The addition of Sarah, Red Light's CTO, to the Board will enable us to stay ahead of the curve utilizing her background in cognitive neuroscience research, immersive technology to develop psychedelic products and consumer offerings. Stay tuned for more updates."
Further details will be announced once available and as the contours of the Oregon regulated market begin to take shape.
HEXO Corp (TSX: HEXO) (NYSE: HEXO) today announced that its flagship Masson-Angers cultivation campus has received its Control Union Medical Cannabis Standard GACP ("CUMCS-GACP") certification, the leading certification standard for medical cannabis cultivation.
"Receiving the CUMCS-GACP certification is a testament to the team's attention to detail and commitment to producing high-quality, consistent cannabis products to serve the global cannabis industry," said Sebastien St-Louis, HEXO CEO and co-founder. "As we continue to go after additional market share in Canada, and to penetrate new markets around the world, this certification demonstrates that we continue to offer high-quality output our current and future CPG partners can count on."
The CUMCS-GACP certification represents a standard of quality and consistency for cannabis propagation, cultivation and post-harvest processes and is compliant with both the World Health Organization and European Medicines Agency Good Agricultural and Collection Practice guidelines.
Namaste Technologies Inc. (TSXV: N) (OTC: NXTTF) a marketplace platform for cannabis and wellness products, announced that CannMart.com has now been launched in french for the province of Quebec and across Canada. The Company also provides a further corporate update.
The Company announced that it has now launched a new french website for CannMart.com that will offer medical products to customers across the province of Quebec which is the second largest province in Canada and all francophones in Canada in the language of their choice. Of particular note is that at CannMart.com, Quebec residents qualifying for medical cannabis have access to certain cannabis products not otherwise available in the adult recreational market including edibles and vape cartridges. The Quebec cannabis market is sizable, with reported cannabis sales in the adult use recreational market alone for the three month period ending January 2, 2021 reaching in excess of $170 million as reported by the legislated monopoly holder for recreational cannabis sales within the province of Quebec.
This announcement marks an important step in CannMart.com's commercial expansion, following months of building its portfolio and taking the necessary strategic measures to ensure proper supply of inventory. Staff have been hired from Quebec who are fully bilingual to offer customers an excellent experience with customers across Canada continue to enjoy the convenience of having their medical cannabis delivered directly to their home in a safe and convenient way.
Namaste also advised that it's wholly owned subsidiary CannMart Labs Inc. has engaged CannDelta with respect to its application for a Health Canada Controlled Drugs and Substances Dealer's Licence for distribution of controlled substances such as psilocybin and psilocin. Namaste anticipates submission of the application by the end of May this year. Projected timeline for receipt of approvals is by the beginning of fiscal third quarter of 2022. Subject to Health Canada acceptance, a Dealer's Licence could allow Labs to engage in a number of activities relating to the controlled substances referenced including the research and distribution of controlled substances and the sale of controlled substances to researchers and companies undertaking clinical trials.
The Company would also like to invite shareholders and guests to participate in attending a virtual town hall so they can hear a presentation on the progress made by the Company.
- Thursday, May 6, 2021
- 12:00 p.m. EST
- Presentation by Meni Morim followed by Q&A
- All Shareholders are invited to submit their questions by May 3rd to: email@example.com. Our CEO, Meni Morim, will answer submitted investors questions during the town hall event.
- Shareholders can access the event using the following link: http://bofc.me/may6townhall
Once again, today's podcast is sponsored by Phyto Extractions Inc. (CSE:XTRX), an agricultural-scale cannabis extraction, distillation and product manufacturer located in Langley, BC at its co-located Health Canada Licensed Standard Processing (extraction, no cultivation), Sales (extracts, topicals, and edibles) through Adastra Labs Inc. and Analytical Testing Laboratory through Chemia Analytics Inc. Adastra Labs also has a pending Health Canada R&D license amendment.
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